Wheeler v. Commissioner
United States Tax Court
1. A personal holding corporation issued its outstanding stock in exchange for certain securities transferred to it by two of its stockholders. In 1938 its stockholders elected to liquidate under section 112 (b) (7) of the Revenue Act of 1938, under which, inter alia, that portion of the gain realized by each stockholder on liquidation not in excess of his ratable share of the earnings and profits of the corporation is recognizable and taxable as a dividend.
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1. A personal holding corporation issued its outstanding stock in exchange for certain securities transferred to it by two of its stockholders. In 1938 its stockholders elected to liquidate under section 112 (b) (7) of the Revenue Act of 1938, under which, inter alia, that portion of the gain realized by each stockholder on liquidation not in excess of his ratable share of the earnings and profits of the corporation is recognizable and taxable as a dividend. In computing gain or loss for income tax purposes on the sale of such securities the corporation used its transferors' basis, but in…
1Opinion of the Court
OPINION.
ARNOLD, Judge:
These consolidated proceedings involve deficiencies in income tax for the year 1938 as follows:
Docket No. 107255_$30, 695. 00
Docket No. 107258_ 1, 662. 71
Docket No. 107260_ 2,138. 67
Docket No. 107263_ 2, 682. 95
Docket No. 107265_ 1,474.27
The questions involved are (1) whether the respondent erred in applying the provisions of section 501 (a) of the Second Revenue Act of 1940 in computing “earnings and profits” distributed in liquidation by the John H. Wheeler Co. to its stockholders under section 112 (b) (7) of the Revenue Act of 1938, (2) whether section 501 (a) of the…
2Cases cited9 opinions
- Brushaber v. Union Pacific RailroadSupreme Court of the United States · 1916
- Nichols v. CoolidgeSupreme Court of the United States · 1927
- Welch v. HenrySupreme Court of the United States · 1938
- Blodgett v. HoldenSupreme Court of the United States · 1927
- Milliken v. United StatesSupreme Court of the United States · 1931
4 more not listed; retrieve them via the Exa API.
3Cited by14 opinions
- Commissioner v. WheelerSupreme Court of the United States · 1945
- Meyer v. CommissionerUnited States Tax Court · 1950
- Kimbrell's Home Furnishings, Inc. v. CommissionerUnited States Tax Court · 1946
- Senior Inv. Corp. v. CommissionerUnited States Tax Court · 1943
- Ferguson v. CommissionerUnited States Tax Court · 1966
9 more not listed; retrieve them via the Exa API.